Today (Aug 12), the market for grains in China is shown as follows:

Corn:

Corn prices in China mostly keep steady and still drop in some regions, but the declines have slowed. And the average price is 2,278 CNY/tonne nationwide, unchanged with yesterday. The price among deep-processing enterprises in Shandong prevails at 2,440-2,496 CNY/tonne with a decline of 4-10 CNY/tonne from yesterday. At Jinzhou port, Liaoning, the purchasing price of old corn remains flat at 2,200 CNY/tonne (moisture 14.5% and volume weight 690 g/L) and 2,220 CNY/tonne (moisture 14.5% and volume weight 720 g/L), respectively. At Shekou port, Guangdong, the offer for Grade-II new corn is raised to 2,430-2,440 CNY/tonne.

Market’s bullish sentiment has slackened, so some traders in Northeast area have intention to sell the goods in a bid to lock in profits. As the ex-warehouse of corn has been accelerated, more and more corn flows into market beyond Northeast. In this case, corn arrival in Shandong today still remains at high levels, and imported corn is arriving at ports successively, which leads some enterprises to cut the price by 4-10 CNY/tonne. Corn prices stay stable in Northeast crop area and at Southern and Northern ports. Short-term corn market is at risk in paring gains.

Sorghum:

Domestic sorghum prices are stable with a partial rise today, of which dried sorghum prices prevail at around 2,840-2,900 CNY/tonne. Domestic sorghum supplies are reducing and margins are growing, so that farmers and traders both tend to prop up prices. However, Chinese importers have bought relatively huge amount of sorghum, which will be at relatively low prices. Moreover, it become more difficult to stock up sorghum as the weather gets warmer and warmer, and distilleries have also suspended purchases and production entering the hottest period of summer. These together weigh down domestic sorghum market to some extent. Overall, domestic sorghum prices are predicted to maintain its stable trend.

Imported sorghum prices are stable in China today, as market participants are concerned that escalating U.S.-China tensions could affect future imports of sorghum. Moreover, the cost of importing sorghum is also strengthening due to the coronavirus pandemic. However, imported sorghum stocks at Guangdong ports still total 432,000 tonnes as of Aug 7. And an expected rise in sorghum arrivals will probably weigh down US sorghum prices in China. Participants can focus on the development of US-China relations.

Barley:

Imported barley prices steady today. Starting May 19, China has begun to impose 80.5% of anti-dumping and anti-subsidy tariffs on barley originating in Australia for five years, according to announcements by China’s Ministry of Commerce on May 18th. Chinese importers now are scarcely interested in Australian grains. And as of Aug 7th, imported barley stocks totaled 63,000 tonnes at Guangdong ports. The relatively low stocks and the cost of import together help support barley prices. Merely, barley is in weak demand and slow shipments at present. Overall, imported barley prices are predicted to keep steady with a strengthening trend overall.

(USD $1=CNY ¥6.96)